The city says a deal could still be made, but council needs to know why the new requests are needed.

"They need to show us all of their assumptions and costs because, you know, our staff are running models as best as they can and they don't understand a rationale for this new money," said Coun. Don Iveson.

Despite the impasse, many councillors are still hopeful that a deal can be made that will allow the arena to be built.

"We need to come to some happy medium here," said Krushell. "And what that will be, ultimately, I think is really in the Katz Group’s hands. They really need to come to Council and explain what their ask is."

In an email to CBC News, the Katz Group said it does not know if it will take the invitation to speak in a public meeting.